Advice from the DPDW board.
Thanks very much Sam. One thing I might add though, when this is $80 I will maybe consider paying taxes on it. Just FYI. Otherwise, yes sir, these are the kinds of stocks that transform the lives of investors. There are two kinds of brainwashing in the markets in particular that work against the individual investor's ability to develop their steel determination and free will that gives them the conviction to ride the big winners to true wealth.
One is the old brainwashing that says: The little guy can't beat the street. That's funny. The whole reason an iHub exists in the first place is there are people who don't believe they have to settle for 12% a year from a mutual fund and can do it better themselves. But there is a dark side to that drive for self-determination which is an impatience that can lead to manic choices fueled by lack of true decision making.
Penny stocks attract independent thinkers, but it also attracts gamblers. And we all know gamblers without a technique give it all back to the house eventually even if they have a lucky run. So you have penny stock traders with technique who feed off those others without a backbone who follow whatever is hot. Somebody is making money on the penny stocks, but many are not.
So you can beat the street because the street still habitually overlooks stocks on the OTC (forget Pinks, just skip them entirely) until they are moving up towards an uplist or after that. This gives you repeated amazing opportunities every single year to identify future successes and get them cheap and become wealthy. It actually is the most traditional form of investing applied to the area of the markets that is perceived to be the least friendly to investors.
This microcap space is where the true stock picker thrives and accumulates and wins. When the street and the penny stock pack always disbelieves future blue chip companies cannot be bought for a buck that gives you a phenomenal edge. It is the truth, but only each person can experience the truth by developing their own conviction and seeing what it is to ride a 20 bagger.
A 20 bagger that goes from sub-penny to a penny and then collapses is NOT RELATED. I cannot put a quarter million dollars in a sub-penny. I got close to trying it with one pink and it was just greed that let me diverge from my already well established micro-cap investing strategies.
You need a great stock, not the cheapest stock. Don't ever forget that. People get lost fantasizing about multiples from bad companies with depressed share prices. Instead you should be looking at blue chip prodigies going places you can safely park larger sums of money in for a longer time frame.
The second aspect of modern markets that fuzzes peoples minds is the idiotic notion that Buy & Hold is dead. Dumbest thing I have ever heard in my life. Seriously, you have got to have rocks in your head to believe such nonsense. If you are a trader, trade, but never think it is the only way.
Buy & Hold works especially well in the microcaps BECAUSE you have the unusual advantage previously stated, which is: Nobody believes you until it is too late to own it as cheap as you bought it. By the time people start catching on, the earliest entries are gone. To buy a DPDW now at $2 is very, very smart because the trend, the future, the outlook, the foundation are pointing to something extraordinary now.
This is a good strategy for many, which is to buy a stock like this after a strong trend confirms the long term outlook and has already removed various risk layers by the time you enter. So it just becomes a matter of your percentage potential vs. risk. You bought this under a buck, you get a bigger multiple than the new buyer, but you all win. Because you are all investing.
The shareholder base is the second most important thing after management. Of course, the business is the valuation driver, but management is your guardian and deliverer of results. Seek them out in the cheapest stocks and invest in them. It is pretty simple really. Even the most elaborate DD in the world is no substitute for picking the right team. Pick shady people or inexperienced people dealing with shady people and you can find yourself mired in penny stock conspiracy theory wars. Pick a solid, experienced management team doing their next grab for the brass ring and buy them and hold on for your rewards.
The modern buzz environments mitigate against patience and Buy & Hold. Most want to be a trader it seems, but the majority of the big guns make their multi-millions going long. Going with the flow is a big part of trading, but sometimes the same can be said for realizing you have a winner and can load up and go long with that smart money flow that forms the rising tide around your boat.
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DISCLAIMER: These are my opinions only. Do your due diligence before making any investment decisions. I buy my shares like everyone else. I accept no form of compensation.
